The most common _____ is a joint venture, which occurs when two existing companies collaborate to form a third company.
A) business acquisition
B) licensing agreement
C) franchising agreement
D) strategic alliance

Question

Quizplus · Accepted Answer

The statement mentions that two existing companies collaborate to form a third company. This is a typical characteristic of a strategic alliance, which is a type of partnership where two or more companies enter into a mutually beneficial agreement to achieve a common goal. A joint venture is a specific type of strategic alliance where a new company is created as a result of the partnership. The other options mentioned (business acquisition, licensing agreement, franchising agreement) involve different types of transactions between companies and do not necessarily result in the creation of a new entity.

The Most Common _____ Is a Joint Venture, Which Occurs